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Microsoft to change its revenue reporting categories for next fiscal quarter

Microsoft is making some changes in how it reports its financial numbers, starting with its next fiscal quarter that begins on October 1. Instead of two categories ("Devices and Consumer" and "Commercial") Microsoft will now break down its report in three categories: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.

Microsoft says it is making these changes "to reflect the company's strategy and ambitions to build best-in-class platforms and productivity services for a mobile-first, cloud-first world." Here's what each financial segment will cover:

  • Productivity and Business Processes: It will include Microsoft's consumer and business Office and Office 365 divisions, along with its Dynamics and Dynamics CRM Online businesses
  • Intelligent Cloud: This category will show numbers from Microsoft's many server-based businesses, including Windows Server, SQL Server, System Center, Azure, and Enterprise Services.
  • More Personal Computing: This segment will be the place Microsoft will show revenue from its Windows business, along with its hardware devices like Surface and Lumia smartphones. It will also include the Xbox division, and its Bing search business.

Microsoft plans to report its results, with these new segments, for its fiscal year 2016 first quarter on October 22.

Source: Microsoft (opens in new tab)

32 Comments
  • Interesting. Seems like some more accounting hiding tricks hehehe on a more positive note hopefully it will be put more pressure on the big three groups to stop fighting as much against each ought to have the highest business and start collaborating instead
  • I hope this change will hide the Lumia sales reports deep under the overall report.. :P
  • The contrary....
    With this change he can favour Apple and google better
    This man is a politician
  • Whatever you say
  • Here you are nadella erasing the ms we know today, lumia, xbox, Windows etc in one only part of the business
    So expect he will start to dump stuff very soon Like when ibm dumped PSP and OS/2.. History repeating
  • Well IBM became the go to company after they adopted Windows.
  • Ibm nowadays is a hr it resources biz, mainframes producer and a bunch of patents holder....
    Big blu become a medium or small blu
    Nothing of interesting for an IT
  • Um, what? They had ascended to another level not fit for the rest of us humans....they are industry legend right now, just because they are no longer relevant to the rabble such as us, does not mean they are not like gods and Watson their unholy voice... @-@
  • Yes MediaCastleX a paranormal Level LOL!
    A patents holding company with allmost few personell and they keep to resign thousands of ppl worldwide... This is ibm nowadays
  • How does reorganizing the reporting categories erase "the ms we know today"? First off, this is done on a board level, not the CEO level. These reporting categories have changed numerous times during Microsoft's history, including under Gates and Ballmer. When they moved the DevTools division into the Server division under Gates, was Gates "erasing the ms we know today," er, yesterday? When Xbox was moved from Windows division into a new Entertainment division during the original Xbox, did that mean that they cancelled it?
  • With Gates or Ballmer you are right and i agree
    With this new ceo i disagree with you sorry
  • Those talking about hiding are obvious "kids" that fail yo realize this is a PUBLIC company and nothin is hidden, the new buddle groups makes sense from a strategic and budgeting process....
  • "To aid investors with the transition, for the first quarter results only, revenue and gross margin will also be provided for the operating segments that Microsoft reported during fiscal year 2015." so we get both reporting option for this quarter. the old to compare to last year quarter and the new one
  • Exactly. What will be nice to see is Azure numbers not being obstructed by Office 365 like before.
  • Nonsense, all is PERFIDY when it comes to ye olde Microsoft! U^U
  • Exactly.  They just want to break "cloud" out into a seperate category because it's becoming a huge part of their business and it doesn't really fit completely under the existing "consumer" and "enterprise" categories.
  • So, are financial figures so bad, that they are needed to be obfuscated?!?
  • Microsoft is doooooomed. 
  • I don't love anymore this new ms
    Yes, agree they are doomed
  • Yeah, and they chose to "obfuscate" it by breaking it down into more detailed categories.  It's some kind of Jedi mind trick.
  • Cleavitt it seems what ibm did with its PSP division in the last...
  • Do you think you made some kind of logical point or are you aware that your sentence fragment is total nonsense? I'm just trying to figure out if you are suffering from insanity or ignorance.
  • I'm not sure how putting WP along Bing and Xbox will exactly obfuscate anything. If anything, they just grouped the things that bring more losses into the same category. (And yes, Xbox is sold at a loss. So is PS4. Or any other console. That's why the "console wars" is not as trivial as some might think. The less Xbox's Microsoft sells, the greater the loss they make because only after a certain sales number do the production costs get covered by the sales revenues. The same happened with the original Surface RT and is happening with any "entry level" mobile phone.)
  • I cannot imagine they made much from Windows 10 since they gave it away for free and no one uses their shoddy store.
  • You sir, have a little to no imagination then... =p
  • It's free for upgrades not for new PCs.
  • They gave it away for free for people upgrading their PC. Most people don't upgrade. They buy a new PC with the OS already installed. OEMs are still paying for licenses, as are enterprise customers. Windows still makes a significant amount of money. They just won't get the revenue boost they usually get when a new OS is announced because they will not get revenue from upgrades.
  • Going back to basics it seems. Great move! I suppose it is now "do what you know, do it best and maintain focus". Posted via the Windows Central App for Android
  • Nadella is Cloud.
  • 'Coming Soon' category is coming soon.
  • I will be interested to see how much they actually got for Bing maps.
  • I don't understand why Bing wouldn't be part of intelligent cloud...